Pre-Budget GST Decisions Set to Shake India's Taxing Dynamics

Union Finance Minister Nirmala Sitharaman will meet with state finance ministers on December 21-22 for crucial pre-budget consultations and the 55th GST Council meeting. The council will discuss potential GST exemptions on health and life insurance and possible tax rate reductions on common goods, aiming for a rationalised tax structure.

Union Finance Minister Nirmala Sitharaman is preparing for a significant meeting with her state counterparts on December 21-22 for pre-budget consultations and the 55th GST Council meeting, according to an official statement.

This meeting is crucial as state finance ministers will present their recommendations for the upcoming 2025-26 Budget, set for unveiling on February 1, 2025. The GST Council meeting is expected to bring decisions on exempting or lowering GST rates on health and life insurance.

Furthermore, there may be discussions on rationalising tax rates for numerous goods, reducing rates from 12 to 5 per cent based on recommendations from state ministers. The meeting is scheduled in Rajasthan, potentially in Jaisalmer or Jodhpur.

(With inputs from agencies.)